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© Reuters
By Peter Nurse
Investing.com – The US dollar gains positions early in Europe on Tuesday, holding on to its recent strength as traders await further economic clues on the resilience of the US economy and the likely Fed policy response Federal.
By 09:10 AM ET (0910 GMT), the , which tracks the currency against a basket of six other major currencies, was up 0.2% at 104.002, not far off the six-week high of 104. .67 registered on Friday.
Following the US Presidents Day holiday on Monday, traders are likely to pick up steam again on Tuesday and wait for more economic data to support the dollar’s recent rise.
The key report this Tuesday will be the February data, which is expected to show a small improvement over the previous month, but most of the attention will go to the last Fed meeting, earlier this month. , which will be published on Wednesday.
“The focus will be on how close the Fed came to raising 50 basis points at that meeting,” ING (AS:) analysts say in a note. “Watching the Fed Chairman’s press conference after the meeting, Jerome Powell was quite relaxed and announced that the disinflation process had started. However, the market could be sensitive to suggestions that a 50 basis point hike I had been close.”
Dollar bulls will also be watching Russian President Vladimir Putin’s press conference as the invasion of Ukraine enters its second year. This follows US President Joe Biden’s surprise trip to kyiv on Monday, where he pledged his country’s support as long as it is needed.
On the other hand, the pair falls 0.1% to the level of 1.0667, before the publication of the flash data for the eurozone. The region posted surprising growth in the fourth quarter, so traders will be watching to see if this economic rally has continued even as the European Central Bank has raised .
The pair was down 0.2% to the 1.2016 level, dropping the pound even after the UK posted an unexpected budget surplus of £5.42bn in January, the month millions of Brits pay their bills. of income tax.
The pair is up 0.4% to 134.74, after mixed PMI data, with activity contracting much more than expected in February, while activity in the currency has exceeded expectations.
The focus this week is on a speech by Bank of Japan gubernatorial candidate Kazuo Ueda, which is expected to shed some more light on the bank’s ultra-loose policy this year.
The pair is down 0.3% to the 0.6882 level, after the latest Reserve Bank of Australia meeting showed that policymakers had considered raising interest rates by 50 basis points, in its struggle to reduce the from superheated levels.
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